Winding Up Joint Stock Company
Joint-Stock Company:
A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company's shares (certificates of ownership). This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.
In modern corporate law, the existence of a joint-stock company is often synonymous with incorporation (i.e. possession of legal personality separate from shareholders) and limited liability (meaning that the shareholders are only liable for the company's debts to the value of the money they invested in the company). And as a consequence joint-stock companies are commonly known as corporations or limited companies.
Different Ways of the Winding up of the Joint Stock Company:
Winding Up of A Company:
The company is created by law, when the legal existence of a company abolishes it is called the winding up of a company. Following are the various kinds or methods of winding up the company:
1. Compulsory winding up by the court
2. Voluntary winding up i. Members Voluntary Winding up ii. Creditors Voluntary Winding Up
3. Winding up under the supervision of the court
1. Compulsory Winding Up By the Court:
Under the following circumstances a court can wind up the company: 1. If a special resolution has been passed to wind it up by the court. 2. If the company is unable to pay its debts. 3. If company fails to submit the statutory report to registrar. 4. If statutory meeting is not held during a specified period. 5. If a company fails to start the business within one year of the date of incorporation. 6. If a company postpones its business for a one year. 7. If the number of members falls below than two in case of private and below than seven in case of public limited
A joint-stock company is a business entity which is owned by shareholders. Each shareholder owns the portion of the company in proportion to his or her ownership of the company's shares (certificates of ownership). This allows for the unequal ownership of a business with some shareholders owning a larger proportion of a company than others. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.
In modern corporate law, the existence of a joint-stock company is often synonymous with incorporation (i.e. possession of legal personality separate from shareholders) and limited liability (meaning that the shareholders are only liable for the company's debts to the value of the money they invested in the company). And as a consequence joint-stock companies are commonly known as corporations or limited companies.
Different Ways of the Winding up of the Joint Stock Company:
Winding Up of A Company:
The company is created by law, when the legal existence of a company abolishes it is called the winding up of a company. Following are the various kinds or methods of winding up the company:
1. Compulsory winding up by the court
2. Voluntary winding up i. Members Voluntary Winding up ii. Creditors Voluntary Winding Up
3. Winding up under the supervision of the court
1. Compulsory Winding Up By the Court:
Under the following circumstances a court can wind up the company: 1. If a special resolution has been passed to wind it up by the court. 2. If the company is unable to pay its debts. 3. If company fails to submit the statutory report to registrar. 4. If statutory meeting is not held during a specified period. 5. If a company fails to start the business within one year of the date of incorporation. 6. If a company postpones its business for a one year. 7. If the number of members falls below than two in case of private and below than seven in case of public limited